Government terror net plan means a hit to the hip pocket for consumers

Internet and mobile phone users may face higher bills as telcos seek to recover the cost of storing metadata for police and spy agencies.

Communications Minister Malcolm Turnbull today introduced draft laws to parliament today that will require telecommunications companies to keep metadata for two years.

Police commanders and spy bosses have been critical of telcos that erase their metadata - background information about calls and internet use but not the content itself - saying this has hindered investigations into terrorism, organised crime and child exploitation.

The laws were expected to be introduced in 2015 after further consultation but were instead rushed into parliament today after a coalition parties meeting.

Metadata plays a central role in almost every counter-terrorism, espionage and organised crime investigation.

But telcos say the cost of mandatory retention of metadata could be up to $700 million a year, depending on what data elements they need to keep.

Mr Turnbull said the government would make a "substantial contribution" to cover company costs, but was still considering what that would be.